Deferred tax on loss

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2011 If Deferred Tax is not created on Loss of a pvt ltd company in the last year and in current year it is having Profit.
Can that Co. can set off profit with last year's loss ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 September 2011 Set off of loss with profit has nothing to do with deferred tax. In current year, since the company is showing profit, find the "timing difference" and book DTA/DTL as the case may be just to comply with AS-22 and section 211 (3C) of the companies Act,1956.

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